Stamp Duty Exemptions & Refunds 2026 - When You Don't Pay
Every SDLT exemption, relief and refund scenario explained with eligibility criteria and claim processes.
Full List of SDLT Exemptions
Relief Schemes
0% on properties up to £300,000; 5% on £300,001-£500,000. No relief above £500,000. All buyers must be FTBs.
Full guide →MDR was abolished on 1 June 2024. Previously allowed portfolio landlords to average SDLT across multiple units. No longer available for any transactions from June 2024 onwards.
Companies within the same group (75% common ownership) can transfer property between group members without incurring SDLT. Clawback applies if the group relationship ends within 3 years.
When You Can Claim a Refund
If you paid the 5% additional property surcharge because you bought a new main residence before selling your previous one, you can claim a refund if you sell the previous home within 3 years of buying the new one.
Non-UK residents who become UK resident within 2 years of purchase (183 days in a 365-day period starting or ending within 2 years of purchase) can claim back the 2% non-resident surcharge.
How to Claim a Refund
Common Misconceptions
FAQs
What properties are exempt from stamp duty?
Properties exempt from SDLT include: transfers on divorce/dissolution, transfers between spouses or civil partners for no consideration, inherited property (through a will), properties under £40,000, caravans and houseboats, Crown transactions, and charitable reliefs. Most common residential purchases do not qualify for exemption unless they fall within these specific categories.
Can you claim stamp duty back?
Yes, in specific circumstances. The most common refund is the 5% additional property surcharge refund when you sell your previous main residence within 3 years. Apply to HMRC within 12 months of the sale. Non-UK residents can reclaim the 2% surcharge after becoming UK resident within 2 years. Use HMRC's online service for both.
Do you pay stamp duty on inherited property?
No SDLT is payable on property received through a will or intestacy - the inheritance itself is not a chargeable transaction. However, owning inherited property may affect your status as a first-time buyer and may trigger the additional property surcharge if you later buy another property. See the first-time buyer guide for details on how inheritance affects relief eligibility.
Is stamp duty payable on transfer in divorce?
Transfers of property between separating or divorcing spouses or civil partners made under a court order or written separation agreement are exempt from SDLT. This applies even if there is a mortgage on the property that is being transferred. No SDLT return is required for qualifying divorce transfers, though your solicitor should retain evidence of the court order.